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The Bank Nifty June futures ended lower on Thursday as investors turned cautious after the RBI monetary policy committee raised inflationary concerns. The Bank Nifty June 28 contract declined 127.55 points to end at 26,469.95. The underlying value of the contract closed at 26,496.95. In line with the trend, the Nifty Private Bank index closed lower by 10 points at 15,065.20 while the Nifty PSU Bank index has shed 2 per cent and ended at 2,913.35.
Active call options of June 28 expiry
Among the call option chain the In-The-money Bank Nifty Call 26400 option was the actively traded contract on Thursday. The option price closed at Rs 221, down by Rs 99 or 31 per cent. However, the OI in the contract has jumped 47.45 per cent. Traders have bought some long-call positions in the contract as the option price declined in line with the fall in the index. The implied volatility was comparatively lower at 9.22 per cent. This confirms that the underlying Bank Nifty may decline below these levels in the short term. On the upside, the index may encounter resistance at 26700 levels.
The Bank Nifty Call 26800 option contract is currently an Out-Of-The Money option that was very active on Thursday. The contract price was down by 48 per cent to end at Rs 64. Interestingly, the contract’s OI has soared 240 per cent. The IV of the option price was at 10.74 per cent which signifies that this option is not expensive at these price levels. Since there was maximum addition of OI at the 26800 Call strike price, the underlying Bank Nifty index may encounter strong resistance around 26800-26900 in case of an upward journey.
Active put options of June 28 expiry
On the put option chain, the in the money Bank Nifty Put 26600 option contract was traded stronger on Thursday. The put option price gained Rs 49 or 24 per cent and ended at Rs 252.80. The OI has improved by 87 per cent for this contract. The implied volatility was comparatively higher at 15.40 per cent which implies that this contract price was expensive. Hence, the underlying Bank Nifty is likely to get support around 26200-26300 levels in the short-term.
The Bank Nifty Out-of the-money Put 26100 contract was the main focus of traders’ attention on Thursday. This out of the money put option contract gained 7.20 per cent and closed at Rs 61.75. The OI in the counter has jumped by 133.80 per cent. The IV of the option price was relatively higher at 14.74 per cent which suggests that this option price was in keen demand. Hence, it implies that the Bank Nifty underlying may get support around 26100 levels.
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